Question

What is meant by fundamental accounting assumptions? Explain accounting assumptions in detail.

Answer 1

Explanation:

The financial statements are prepared based on certain assumptions which are neither disclosed nor required to be disclosed as the same are understood, so they are called Fundamental Accounting Assumption

Fundamental assumptions, basic assumptions or fundamental accounting assumptions mean the accounting concepts that have been considered and followed while recording financial information. As information needs are different from person to person, entity to entity and situation to situation thus such assumptions vary.